India Receives Relief Amid Global US Tariff Hikes, Says NSE CEO

Despite the recent rise in global tariffs, India has received some relief compared to other countries, according to Ashish Chauhan, Managing Director and CEO of the National Stock Exchange (NSE).

Speaking to the media on global market developments, Chauhan emphasized that while many nations have been significantly affected by the new tariffs, India’s situation remains relatively favorable.

India’s Competitive Advantage Amid Tariff Hikes

Chauhan noted that although new tariffs have been imposed recently, India has managed to avoid the worst of the impact.

“India has still received some relief compared to other countries,” he stated.

He also highlighted that in the coming months, multiple nations will discuss with the United States reducing tariff burdens, and India will actively present its case in these talks.

Expected Global Engagement On Tariffs

Chauhan suggested that countries such as Pakistan and Bangladesh, which historically maintained lower tariffs to support their import-export businesses, would continue to play a role in international tariff negotiations.

However, he added that India’s relatively better position compared to other nations would help it stand out during future tariff discussions with the US.

SBI Research Report Supports Chauhan’s View

A recent report from the State Bank of India (SBI) Research supports Chauhan’s comments, suggesting that US tariffs have a relatively limited impact on India.

According to the report, India’s exports to the US account for only about 4% of its GDP, minimizing the country’s vulnerability to tariff hikes.

Additionally, India’s new tariffs from the US are the lowest among major Asian nations, providing a competitive edge over countries like China, Vietnam, Thailand, and Indonesia.

Sectors Set To Benefit From Tariff Advantage

The SBI report further identified potential benefits for certain sectors in India despite ongoing short-term challenges.

It noted that India’s electronics and agriculture sectors could gain in the long run due to its tariff advantage.

However, sectors such as gems and jewellery and engineering goods may face difficulties in the near term.

“We expect India will have a competitive advantage and export-oriented impact on various sectors,” the report stated on April 4, 2025.

Decline In India’s Exports To US

The report also pointed out that India’s exports to the US have been on a declining trend since FY23, with the share of US-bound exports dropping to around 17-18% of total exports.

The top 15 items exported to the US made up 63% of total exports, suggesting that India’s export landscape is heavily reliant on a few key products.

As global trade dynamics continue to shift, India’s relatively favorable position concerning US tariffs may provide it with opportunities to strengthen its exports and enhance its competitive advantage in the international market.

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